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Supreme Court of India 2019-02-11 allowed

R V PRASANNAKUMAAR vs MANTRI CASTLES PVT. LTD

Bench: 2 — D.Y. Chandrachud, Hemant Gupta

In Brief

Flat purchasers sought interest on delayed possession of apartments sold by Mantri Castles Pvt. Ltd. The NCDRC awarded 6% interest but only until 31 July 2016, even though not all purchasers had been offered possession by then. The Supreme Court held that interest must continue until each purchaser is actually offered possession, not an arbitrary cutoff date. The Court also upheld the NCDRC's decision to override the inadequate contractual compensation clause (Rs. 3 per sq. ft. per month) and award 6% interest instead, finding such contractual terms insufficient to provide just recompense. The developer's denial of possession to 43 purchasers merely because they filed a consumer complaint was unreasonable.

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Consumer Protection Real Estate Delayed Possession Interest and Compensation NCDRC Jurisdiction Contractual Terms

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